Relais Group: Profitability recovers as expected
Relais’ Q2 operational development was well in line with our estimates. The bottom line was especially depressed by factors related to exchange rates that do not, however, have a cash flow effect. Thus, the overall picture of the Q2 report, which was pretty much in line with our expectations, does not change. Our estimates for 2023 decreased slightly, especially due to the weakening of SEK, but overall our estimate changes for the next few years were minor. Thus, we reiterate our EUR 15.5 target price and Accumulate recommendation.
Relais Group
Relais Group is an importer and wholesaler for the automotive industry. The Group focuses mainly on the development of vehicle electronic equipment for trucks. Examples of products that the company delivers include lighting products, applications for warning lights, lighting and camera systems, as well as other spare parts for heavy vehicles. The largest operations are in the Nordic and Baltic markets, with customers in the aftermarket industry.
Read more on company pageKey Estimate Figures10.08.2023
2022 | 23e | 24e | |
---|---|---|---|
Revenue | 260.7 | 285.5 | 308.2 |
growth-% | 9.62 % | 9.51 % | 7.96 % |
EBIT (adj.) | 23.0 | 27.7 | 31.6 |
EBIT-% (adj.) | 8.81 % | 9.71 % | 10.27 % |
EPS (adj.) | 0.80 | 0.80 | 1.09 |
Dividend | 0.40 | 0.42 | 0.44 |
Dividend % | 3.92 % | 3.53 % | 3.70 % |
P/E (adj.) | 12.67 | 14.92 | 10.90 |
EV/EBITDA | 8.96 | 8.44 | 7.51 |